Investigation | Auditing | Difference & Characteristics | Audit | ICAI | VNSGU скачать в хорошем качестве

Investigation | Auditing | Difference & Characteristics | Audit | ICAI | VNSGU

Investigation: According to Spicer and Pegler: "The term Investigation implies an examination of accounts and records for some special purpose." CHARACTERISTICS OF INVESTIGATION (1) Object: The object of investigation is to examine accounts and some other matters for some special purpose e.g. if there is a fraud. Similarly, if the bank wants to grant loan to a person or a firm, it has to investigate the accounts to see that the borrower will be able to pay interest regularly and repay the loan at the appointed time. (2) Scope: The scope of audit is fixed but the scope of investigation depends upon the type of investigation and also on the understanding about the scope between the investigator and the party entrusting the investigation to him. (3) Qualifications of Investigator: The task of an investigation is complicated and technical and requires a high degree of skill and intellegence. So a person having sound knowledge of Accounting and Auditing and having long experience and skill is appointed as an investigator. He need not be a chartered accountant but is generally a senior member of accountancy profession. (4) Procedure: There is a standard procedure for audit work. But as far as investigation is concerned, there is no standard procedure. Looking to the requirements of the type of investigation, the investigator would decide which procedure to follow. (5) Report: The purpose of entrusting investigation is to find out the facts of the objective for which investigation is undertaken. Hence, the report must be such that it gives enough facts about the findings so that the party concerned can draw proper conclusion therefrom. Hence, the report must be exhaustive, analytical and descriptive. (6) Different from Audit: Any person not conversant with principles and of accounting will believe that audit and investigation are the same. But practice of from than the above discussion, one would say that investigation is more exhaustive than auditing and would cover investigation is more exhaustive than auditing and would cover examination of accounts of three to five years. (7) Personal Examinations: In auditing only books of accounts are examined, while in investigation it will also involve personal examination of directors, managers while in and even auditors to find out real facts about the matter under investigation. (8) Pre conceived Suspicion: While auditing books of accounts, the auditor does not approach his work with preconceived notion that there is fraud or something wrong with the accounts. But in case of investigation, there is always a preconceived notion that there is some fraud or mistake or something wrong (9) No Specific Rules: Unlike auditing, there are no specific rules or procedures to be followed in investigation. As there are various types of investigations, the examination is very minute so that various types of procedures may be followed. (10) Not Compulsory : Audit of joint stock companies is compulsory by law but investigation is not compulsory under any law. It depends upon the decisions of management #investigation #auditing #auditingvsinvestigation #audit #auditor #icai #icai_students_group #icaistudents #icaistudymaterial #bcomsem6 #vnsgu #vnsgroup #learnwithhimanshunandwani #himanshunandwani #bcomhonours